Compacting expanded perlite fines in the presence of a small amount of binder (starch and/or clay) and water, followed by drying, produces particles with low density, good integrity, and surprisingly higher absorption by volume than non-compacted expanded perlite or non-swelling clay. Furthermore, addition of a small amount of clumping agent (e.g., guar gum) to the compacted granules results in a clumping litter with low density, good integrity and comparable clumping ability to traditional clay clumping litter.